The U.S. Stock Market Begins to Make a 'Rebound', What is Happening in the Market?

<p>&nbsp;US stock futures posted gains on Thursday as traders turned their attention to corporate news after realizing that rate cuts may be delayed beyond the first quarter.</p><p><br /></p><p>Stock market Nasdaq 100 and S&amp;P 500 Index futures rose 0.6% and 0.3%, respectively. The Stoxx Europe 600 index rose slightly, after falling nearly 2% in the first three days of the week. China's CSI 300 index rose as much as 1.4% as a surge in ETF trading showed the involvement of government funds.</p><p><br /></p><p>Chipmakers gained in US pre-market trading after Taiwan Semiconductor Manufacturing Co., a key supplier to Apple Inc. and Nvidia Inc., said it expects strong growth this quarter. Microchip Technology Inc., Advanced Micro Devices Inc. and ON Semiconductor Corp. each adding more than 2%. The Boeing Co. up after winning an order for 150 of the troubled 737 Max planes from India's newest carrier.</p><p><br /></p><p>Signs that European policymakers expect a rate cut as early as June helped calm markets, along with indications that Chinese government funds are bailing out equities hit by a sluggish economy.</p><p><br /></p><p>Technology stocks fared better, with ASML Holding NV up around 2% and ASM International NV jumping more than 4%.</p><p><br /></p><p><br /></p><p>Although some structural factors supporting corporate earnings in 2023 will remain, investors should not expect too much, said Ekaterina Iliouchenko, senior portfolio manager at Union Investment Privatfonds GmbH in Frankfurt.</p><p><br /></p><p>Bonds jumped after extended selling on Wednesday. Policy-sensitive two-year yields fell four basis points after jumping 14 basis points on Wednesday, the biggest one-day gain since June.</p><p><br /></p><p>The decline in bond prices reflects a change in investor expectations for the Federal Reserve's rate cut in March. There were indications that such reductions fell below 60% on Wednesday for the first time since mid-December.</p><p><br /></p><p>The drop followed comments from Fed policymakers this week that defied market expectations for an imminent tapering and better-than-expected retail sales data on Wednesday. Strong consumer spending helped boost the economy in recent weeks, the Fed said in its Beige Book survey</p><p><br /></p><p>"If US rates fall, then the surge in consumer spending is likely to continue, but if inflation surprises again, then it won't," said Michel Danechi, portfolio manager at Vedra Partners.</p><p><br /></p><p>Meanwhile, European Central Bank President Christine Lagarde and several other policymakers signaled the possibility of a rate cut around mid-year, when they will know more about inflation, wages, and economic developments and the impact on supply chains by Yemen's Houthi rebels.</p>